Power sector surplus scenario in India

India achieved notable progress in electricity capacity addition in recent years. A good news is that the energy deficit and peak deficit are set to be eliminated for the first time. The Central Electricity Regulator Authority expects surplus electricity generation in the current (2016-17) year.

The power sector of the country has made two notable achievements since the eleventh plan and the twelfth plan trends also indicate that these achievements are continuing. First one is the progress in capacity addition and the second one is the expansion of transmission networks. Completion of the national power grid has also unified the country as a single power system.

Notably, country’s progress in electricity generation started from the eleventh plan onwards. During the eleventh five-year plan (2007-12), 54964 MW capacity addition was made against a target of 78700 MW. Total electricity at the end of the plan was nearly 175000 MW. Twelfth plan continued the momentum obtained during the previous plan and the private sector contributed significantly to new capacity addition. The Twelfth Plan aims to make a capacity addition of 88537 MW.  Total capacity addition grown from 145755 MW in 2006 to 271722 MW (including non-utilities is 316379 MW) in 2015.

The Load Generation Balance Report (LGBR) 2016-17 by Central Electricity Authority project that the country is likely to experience the energy surplus of 1.1% and peak surplus of 2.6% during 2015-16.

Expected energy requirement for the year is 1214642 whereas the availability will be 1227895. As per the report, India is going to achieve both energy and peak time surplus of 1.1% and 2.6% respectively in 2016-17. According to the Central Electricity Regulatory Authority, 153000 MW electricity generation is enough to meet peak time demand. The marginal deficit situation for the 2015-16 is depicted in the table.

Table: Energy and peak deficit for 2015-16


Energy (MU)

Peak (MW)










Shortage %



Source: LGBR 2016-17, Central Electricity Authority

Prime Minister’s portal also elaborates achievement in the power sector. “A capacity addition of 22,566 MW was achieved in the last year which is the highest ever. The peak shortage has reduced from 11.9% in 2008-09 to 3.2%, the lowest ever. Energy deficit during the current year has also reduced from 11.1% in 2008-09 to 2.3%, the lowest ever in the history of India.”

Even higher performance has been recorded in the transmission front. During the year 2015-16, a total of 28,114 circuit-km of transmission lines and 62,849 MVA transformation capacity was added. The twelfth plan target for transmission lines is110340 ckm and 270000 MVA transformer capacity for the whole period. “With the commissioning of these transmission lines, the inter-state and intra-state capability of power transfer in the country enhanced considerably.” -LBGR.